LEGO System by Samsonite™

1961: Sales start in the United States and
Canada through a license agreement with Samsonite Corp.

1961–1962: Lego makes an arrangement
allowing Samsonite to begin producing and selling Lego products in Canada,
an arrangement that would continue until 1988.

Although there were several notable early
American toy and game manufacturers, such as A.C. Gilbert, Milton Bradley and
Parker Brothers, the US never had the toy-making tradition of Europe.
Nevertheless by the late 1950’s it had become the largest toy market in the
world.

By the 1950’s a pent-up war-time demand for
consumer goods, along with a huge post-war manufacturing capacity, especially in
plastics, resulted in a dramatic increase in consumer spending, Coupled with a
doubling of the birthrate-the “baby boom”- the US toy industry began to
flourish. (1). (1) It is not coincidental that the
largest toy company in the world, Mattel, was founded in California during this
time. Finally, and perhaps most importantly, the age of television began
and in 1952 Hasbro created the first toy commercial (for Mr. Potato Head).
Television advertising directly to these “boomer” children, rather than to
their parents, completely changed how toys were marketed and revolutionized the
entire industry.

Clearly North America was an important market
but its sheer size and distance from Denmark required a sales and distribution
network that was too large for Lego to manage at the time. So, similar to the UK
market, Godtfred looked for a licensing partner and he found it in the most
unusual place: Shwayder Brothers, Inc.

The Shwayder Bros. Trunk Company was founded in
Denver, Colorado in 1910 by Jesse Shwayder. Jesse and his four brothers began to
manufacture trunks and suitcases. In the 1940’s they developed a process for
lithographing an image on cellulose acetate covered luggage and marketed it
under the name Samsonite.(2) (2) After the success of the
Samsonite luggage, named after the biblical Samson, Shwayder Brothers began
marketing all of their products under the Samsonite brand. It wasn’t until
1965, however, that the company changed its name to the Samsonite Corporation.
By the 1950’s Shwayder Brothers, Inc. had several manufacturing facilities
producing both luggage and furniture. By the early 1960’s they were looking to
expand their business and felt that their experience with both plastics
production and retailing fit well with the growing plastic toy industry and an
arrangement with Lego seemed to be a perfect fit. So when a Shwayder executive
met Godtfred on a business trip in Europe he bid on the US license.

Godtfred signed an agreement with King Shwayder,
the son of the founder and now president of the company. The result was a
99-year license for exclusive North American distribution rights. Shwayder
Brothers began marketing sets under the name ‘Lego by Samsonite’ in the US
in 1961 and Canada in 1962. Samsonite set up a separate sales organization for
Lego, but they also began to develop and market a full range of toys, such as
educational preschool toys, board games, childrens furniture, and in 1968, after
they bought the Manning Manufacturing Corp, a range of roller and ice skates.

Initially Samsonite manufactured the basic
bricks in their existing Stratford, Ontario plant and imported the specialty
pieces, such as the trees and HO vehicles, from Billund. (3) They also set up a
model shop in their Detroit furnuture plant. The original US retail assortment
was not the same as the European assortment but was, at least, marketed
similarly: They offered a series of sets, including the large 725 Town Plan
and the 717 Junior Constructor, which was unique to Samsonite, as well as
several smaller 700 series “Gift Sets” and a number of Supplementary Sets.

In April 1965, Samsonite opened a second plant,
a 50,000 ft2 facility in Loveland, Colorado, devoted exclusively to
Lego manufacturing and by the mid 1960’s Samsonite was marketing an almost
completely different assortment than in Europe. This new assortment included
sets much larger than those in Europe; such as the 003 Master Mechanic, the 004
Master builder and 704 Master Discovery sets, as well as several sets, such as
the 001 Gear Set, 002 Motor Pak and the 041 Beginners Set, which included
special pieces developed by Lego Futura exclusively for the North American
market.In de begin jaren 60 wilde LEGO uitbreiden naar
de V.S. en Canada. Maar dit was zo'n grote markt voor het kleine bedrijf,
dat ze een licentie overeenkomst sloten met de Samsonite Corporation in Denver
Colorado. De licentie was voor 99 jaar afgegeven, alhoewel LEGO hem in
1972 terugkocht. Tussen 1961 en 1972 werden alle LEGO doosjes in de V.S.
uitgegeven door "LEGO by Samsonite". De Canadese Samsonite licentie
liep langer door van 1962 tot 1986.

Throughout the 1960’s Samsonite continued to market a relatively small number
of sets: the 1963 retail catalog listed just 51 sets; the 1967 dealers catalog
just 28 sets and the 1970 catalog just 41 sets. In addition to the retail sets,
however, Samsonite also offered a number of special mail-order sets.
Nevertheless their total assortment was never more than a fraction of the
European retail assortment.

At its peak in the late 1960’s Samsonite
managed annual Lego sales of about eight million USD — figures far behind
those seen in Europe.

The problems were that Lego had to share
marketing resources with a wide range of other Samsonite toys and, perhaps more
importantly, the entire toy line was marketed just like the company’s
suitcases and furniture. They found that unlike their core business toy
retailing required too many special deals and conditions. As a Samsonite
executive stated in a 1976 interview: “Our managerial expertise was better
suited to consumer durables than to toys, so we eased out of the toy
business.” (5) (5) “A Danish Toymaker Puts It
Together in the U.S.” Business Week Sep 6, 1976: 80, 83. As
their relationship with Lego began to sour and as Godtfred realized that Lego
could now manage the North American market, Lego started the process to revoke
the license; one that apparently involved litigation.

Samsonite responded by drastically scaling back
their retail assortment. The final 1972 catalog shows just eight different sets,
all packaged in simple square boxes that emphasized the Samsonite rather than
the Lego brand. Their considerable remaining inventory was liquidated in the
form of ever-larger sets, including catalog sets which, by this time, were as
large as 1300 pieces.

In 1972 the rights for US production and
distribution reverted back to Lego. As part of this agreement Samsonite
continued to market sets in Canada until 1986 and Lego paid royalities to
Samsonite until 1989. Samsonite was also allowed to sell off any remaining
inventory and the large catalog sets were sold as late as 1974.

(Click on the pictures to enlarge them!)

Samsonite imported old moulds form
Denmark, and made some changes on these. That's why the bricks shown under have
differt types of 'LEGO' on the nods: (Thanx to Jeroen van Dorst for the
pictures!)